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A Beginner’s Guide to Dogecoin Mining

Republished by Plato

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So, you want to mine Dogecoin. The good news is you’ve come to the right place to get started mining the most successful meme coin available to humankind.

Welcome to the community that sent the Jamaican Bobsleigh team to the 2014 Olympics, helped bring clean water to a remote African Village, and sponsored a NASCAR driver at the Talladega Superspeedway – and all under the umbrella of a memed Japanese Shiba Inu.

Editor’s note: This Dogecoin mining review was originally published in November 2018. It has since been updated to reflect new information and market updates. Please refer to our Dogecoin guide for a more detailed analysis. 

Dogecoin: A Very Brief History

Dogecoin was founded by Jackson Palmer with help from Billy Markus. But to say founded is a little misleading since Dogecoin began as a joke, a parody of the moon chasing crypto communities.

Dogecoin, the joke, was started by Jackson Palmer initially on Twitter and later as a website he built. Dogecoin, the cryptocurrency, was released in 2013 by Palmer and Billy Markus with the hope to make cryptocurrencies a little more fun and approachable.

In its past, Doge has been used to crowdfund charitable donations and finance sporting sponsorships. More recently, the cryptocurrency is growing merchant adoption and finding better use cases beyond the energetic Dogecoin community.

So, what is Dogecoin? It’s a fun-loving altcoin/community/meme, sometimes worth over a billion dollars.

Intro to Dogecoin Mining

Here are some basic Dogecoin details compared to other cryptocurrencies like Bitcoin and Litecoin. Note that Litecoin and Dogecoin both use Scrypt hashing algorithms. This similarity has enabled merged mining between the two coins and allows for Dogecoin and Litecoin to be mined simultaneously. It’s like getting two for the price of one.

Dogecoin Bitcoin Litecoin
Algorithm Scrypt SHA-256 Scrypt
Difficulty* 2881328.6684 7182852313938.32 8717916.0203
Block Time* 1 minute 10 minutes 2.5 minutes
Block Reward* 10,000 DOGE 12.5 BTC 25 LTC
Current Coin Supply** 116,696,031,816 17,339,662 58,865,752
Y2050 Coin Supply** 280,853,172,058 20,983,495 83,883,478

As of Oct 25,2018 (*) coinwarz.com (**) onchainfx.com

There are two approaches to mining Dogecoin. Firstly, you can solo mine, meaning you provide hashing power yourself and are the only benefactor when confirming blocks. Solo mining is often very difficult to make profitable at a small scale and is best suited for larger operations. Unless you are just tinkering, in that case, tinker away, but expect a loss.

You should also be aware that there is an idea going around saying that solo mining Dogecoin is dead. The conclusion is that ASIC’s Litecoin miners have bloated the hash rate in Dogecoin mining so high that rewards are more commonly an indirect result of merge mining Litecoin and not directly mining Dogecoin.

Pooled mining, for the newbie miner, is a better approach if you’re looking for a higher return on your investment. Pooled mining is a collaborative effort between members who contribute their hashing power. Block rewards are proportionately shared among the members when a block is confirmed.

When you’re first getting started, you should join a Dogecoin mining pool. Competition is stiff and there is some serious hashing power out there, including ASICs. Merged mining of the more profitable Litecoin by ASICs means that some of that hashing power is also being used on the Doge network. Pooling moderate amounts of hashing power can give you the ability to compete for blocks even against larger mining operations. After all, “penny, penny makes a dollar.”

What You’ll Need to Get Started Mining Dogecoin

Before you can start mining and subsequently make it rain Doge, you’ll need a few things to make it happen.

  • Hardware. To start, any Windows, Mac OS, or Linux system will do. Basic machines are great to experiment with but scaling will require some more serious hardware including GPUs and ASICs.
  • Software. Depending on your OS and hardware the software can vary. Here are a few examples.
  • Dogecoin Wallet. You’ll need somewhere to send your mined Doge.

At this point, you could jump into mining, but remember that going it alone and mining Dogecoin solo is really tricky to make a profit, especially one worth your time. Instead, tap into a Dogecoin mining pool and take advantage of some that sweet sweet synergy.

  • Mining Pools. You’ll need a pool that supports Scrypt mining, here are a couple of good ones to get you started.
      • Prohashing: X11, Equihash, SHA-256, and Scrypt mining pools.
      • Multipool: Supports merged mining of Litecoin and Dogecoin.
  • Pro tip: If Dogecoin is your absolute endgame here, consider mining other Scrypt coins and selling them for Dogecoin. You can net more Doge with less hashing power.
Dogecoin mining at Prohashing

A look at the Prohashing miners’ dashboard

Alternatively, Dogecoin Mining in the Cloud

There is an easier method to mining Dogecoin and that is cloud mining. This hands-off approach lets you more-or-less just buy into a mining operation. You don’t own anything, instead, you rent the hardware from a larger data center. They run the mining for you and take their cut, as well as typically charge you for the electricity.

Cloud mining can be a strong option for anyone not looking to be committed to hardware or interested in managing the mining. However, cloud mining can be risky since most contracts are time locked. Meaning if you take a one-year Dogecoin mining contract from a cloud miner and the price of Doge falls below the cost of the mining and electricity then, well, I’m sure you can figure it out, but your ROI might take a hit.

In fact, Scrypt cloud mining has taken a hit recently and that includes Dogecoin. Top cloud mining services like Genesis Mining and Eobot have far fewer, if any, contracts for Scrypt mining.

There are also hashing power marketplaces, like Nicehash, where you can still get Scrypt mining contracts. NiceHash is slightly different than the other cloud mining pools since it pairs hashing power with buyers. The hashing power for sale isn’t from one mining company but from many ad hoc sellers. A cool system but a little tougher to get a handle on the bidding and pricing.

Can You Earn Interest on Your Dogecoin?

At the current moment, there aren’t any cryptocurrency interest accounts that offer interest on Dogecoin deposits. However, as the cryptocurrency interest account space expands to include more assets, it isn’t completely out of the logical range of thought that a company like BlockFi or Celsius may add Dogecoin. The asset’s volatility, however, may not work in its favor in this regard. 

The Conclusion on Dogecoin Mining

Ultimately, mining Dogecoin at a profit is going to be difficult, possible, but difficult. Dogecoin, though, has never really been about the money or profits, despite being worth millions. It’s an open and welcoming community of crypto enthusiasts willing to learn and share.

So in the spirit of the community, mining Dogecoin is an accessible way to get into the crypto scene. With new, more affordable options for mining, like USB Scrypt ASIC miners being made, the barriers to getting involved are lower than ever before.

Source: https://coincentral.com/dogecoin-mining-guide/

Blockchain

Tim Draper Handpicks Netflix as the Next Company to Purchase Bitcoin

Republished by Plato

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Popular venture capitalist and Bitcoin bull Timothy “Tim” Draper predicted that major online streaming platform Netflix could be the next company to join the bitcoin buying bandwagon.

Next Bitcoin Investor Could Be Netflix

Speaking in a recent episode of the Unstoppable Podcast, Tim Draper stated that Netflix could be the next in line to add bitcoin to its balance sheet. According to him, the company’s co-founder and co-CEO, Reed Hastings, makes Netflix a likely bitcoin investor. Draper buttressed his point, saying:

“I think Reed Hastings is a very innovative guy and has a lot of creative thinking and I think he still controls the reins at Netflix. And so I think that might be the next big one to fall.”

Meanwhile, the venture capitalist mentioned social media giant Facebook, as well as other major companies like Apple, and Google, as likely candidates to invest in bitcoin. However, Draper noted that the companies were instead trying to create a centralized currency of their own.

Draper also stated that if he was the chief financial officer (CFO) of any major organization, he would advise the company to allocate a portion of their portfolio to bitcoin. According to the BTC proponent, bitcoin served as a hedge against inflation.

Since Tesla’s billion-dollar bitcoin investment, there have been speculations about which company would emulate Tesla’s move. Increased institutional interest in bitcoin is largely responsible for BTC’s bullish momentum. Meanwhile, Firms like Microstrategy and Square recently added to their bitcoin holdings.

Amazon Likely to Accept Bitcoin as a Payment Method?

Apart from pitching Netflix as the next possible bitcoin investor, the venture capitalist stated that the retail giant Amazon could start accepting bitcoin. Adding that, people could use the flagship cryptocurrency to purchase products on Amazon.

Back in February, there were reports that Amazon was looking to introduce a new project that would enable customers to convert cash into digital currency. While the project would launch in Mexico, the company did not state what digital assets it would support, although there were speculations that the company may not use popular crypto-assets like BTC or ether.

While also speaking on bitcoin’s price target, Draper said:

“The current currency holdings around the world in dollars is about $100 trillion and bitcoin’s market cap is just reaching a trillion now. So there’s no reason it can’t go up a 100 fold. It’s not like it is going to completely replace the dollar. Although I think people are going to laugh when they are trying to buy things with dollars in the future.”

The venture capitalist made a prediction earlier in 2020 that the price of bitcoin would reach $250,000 by the end of 2022 or early in 2023.

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Source: https://cryptopotato.com/tim-draper-handpicks-netflix-as-the-next-company-to-purchase-bitcoin/

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Ripple is committed to San Francisco, says co-founder Chris Larsen

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In October last year, Ripple co-founder Chris Larsen said that the firm may consider relocating to other countries citing the lack of regulatory clarity in the United States. Since then, many have speculated where the firm’s new headquarters will be located. However, amid a lawsuit with SEC regarding an alleged illegal securities offering, and XRP’s dwindling price, Larsen made a new announcement recently that stated that the firm was here to stay. 

Speaking to The San Francisco Chronicle, co-founder said that Ripple’s global headquarter will remain in San Francisco. He added: 

We’re committed to the city. It’s got the most diversity, creativity…it’s got the critical mass.

Earlier, CEO of Ripple, Brad Garlinghouse, hinted at a possibility that Ripple could move out of the US, given its “lack” of a regulatory framework. He stressed that the country was “out of sync” and needed to implement a clear regulatory framework regarding crypto.

At the time, the CEO said that he was considering whether Ripple would benefit from relocating to a country where regulations were more clear. He admitted to being impressed by how the UK and other G20 nations including Singapore, Japan, and the UAE had “clear regulatory frameworks” that allowed for “healthy markets to develop.”

Meanwhile, another leading crypto firm in the neighborhood has decided to do away with its headquarters altogether. Coinbase CEO Brian Armstrong said that amid the firm’s work from home policies they choose not to have a base in San Francisco, but will continue to keep their offices open. Stating that the company is “decentralized” the CEO added:

As we’ve moved to a remote first environment, we realized that we no longer have a headquarters located in any one city.


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Source: https://ambcrypto.com/ripple-is-committed-to-san-francisco-says-co-founder-chris-larsen

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3 key Ethereum price metrics show pro traders are aiming for $2K ETH

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On Feb. 20, Ether (ETH) price rallied to a new high at $2,015 and this caused multiple indicators to display signs of excessive optimism. While the excitement could be easily justified by Ether’s  year-to-date 176% gain, these warning signs should not be ignored.

On of the primary driving factors of the current bullish sentiment is the launch of CME ETH futures and Grayscale Investments ETH Trust reaching $6.3 billion assets under management. The DeFi phenomenon also continues as there is currently more than $21 billion worth of Ether locked in DeFi.

Crypto Fear & Greed Index. Source: alternative.me

Currently, the Crypto Fear & Greed Index is at 93, indicating “Extreme Greed” according to its methodology. Many traders use the metric as a counter trading signal, meaning, the extreme fear level can be a sign that investors are bullish and a buying opportunity is present. In contrast, when investors are getting too greedy, it could be a sign that the market is due for a correction.

Unlike the excessively leveraged retail traders, the more experienced market makers and whales hs been skeptical of the never-ending rally in Ether. Regardless of the rationale for the price peak, the 36% price correction that followed was accelerated by large liquidations.

Ether futures contracts aggregate liquidations. Source: Bybt.com

The liquidation of $2 billion in long futures contracts from Feb. 19 to Feb. 23 represented 28% of the total open interest. Thus, one should expect significant deterioration in market sentiment, as depicted on the previous Fear & Greed indicator.

Surprisingly, none of that happened on the Ether derivatives markets, as both futures contracts premium (contango) and the options skew remained bullish.

The futures premium held very healthy levels

By measuring the expense gap between futures and the regular spot market, a trader can gauge the level of bullishness in the market.

The 3-month futures should usually trade with a 10% or higher premium versus regular spot exchanges. Whenever this indicator fades or turns negative, this is an alarming red flag. This situation is known as backwardation and indicates that the market is turning bearish.

OKEx 3-month ETH futures basis. Source: Skew.com

The above chart shows that the indicator peaked at 39% on Feb. 20 as Ether touched its all-time high. Nevertheless, it has kept above 16% during the entire correction down to $1,300. This data shows that professional traders remained confident in Ether’s price potential.

The options skew remained neutral-to-bullish

When analyzing options, the 25% delta skew is the single-most relevant gauge. This indicator compares similar call (buy) and put (sell) options side-by-side.

It will turn negative when the put options premium is higher than similar-risk call options. A negative skew translates to a higher cost of downside protection and indicating bullishness.

The opposite holds when market makers are bearish, causing the 25% delta skew indicator to gain positive ground.

ETH options 25% delta skew. Source: laevitas.ch

Over the past month, there hasn’t been a single incident of a sustainable positive delta skew. Therefore, there is no evidence that option traders demanded more significant premiums for downside protection.

This data is very encouraging, considering that Ethereum faced a heavy sell-off but the futures and options metrics discussed above held bullish levels during the downturn.

As Ether managed to recover quickly from its recent $1,300 dip, investors gained further confidence that the uptrend had not been broken.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Source: https://cointelegraph.com/news/3-key-ethereum-price-metrics-show-pro-traders-are-aiming-for-2k-eth

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